Acetic Acid Market-Players Spend on Brand Awareness to Up Sales




Description
The Report Contains
Acetic Acid Market Size By Application (Acetic Anhydride, VAM, Acetate Esters, PTA), Downstream Opportunities, Competitive Analysis & Forecast, 2012 – 2022


Industry Overview
Global acetic acid market size was estimated at over USD 6.4 billion in 2014 and is likely to witness gains at over 9% up to 2022.

Strong demand in production of vinyl acetate monomers and PTA, coupled with increasing use as a chemical reagent for camphor, monochloroacetic acid, photographic chemicals and diketene is likely to drive acetic acid market growth.

There has been a surge in EVA copolymers, PVA films and polyvinyl alcohol for waterborne coatings and adhesive production, thereby driving VAM demand for automotive, construction and interior applications. In addition, rising PET bottle recycling rate is also expected to spur PTA demand.

In recent times, rising consumer preference towards the use of vinegar as a functional nutraceuticalis expected to have a positive impact on acetic acid market growth. Fluctuating methanol prices may affect business dynamics and put acetic acid manufacturers under pressure over the forecast period.

Industry participants are also looking at potential downstream opportunities, which may result in a surge in R&D spending in the market. Acetic acid prices are expected to remain relatively stable, assuming moderate business fluctuations and gains between 4% to 5% are estimated over the next seven years.
  
Application Overview
VAM and PTA applications dominated acetic acid market demand in 2014, together contributing to over 50% of global consumption in 2014. Demand for PTA application is expected to witness significant gains over the next seven years, with revenue estimated to reach USD 2.9 billion by 2022. This is predominantly driven by strong growth for PET, especially in beverage packaging.

Acetate ester applications are expected to account for over 14.5% of acetic acid market volume by 2022, driven by the growing use as diluents and solvents for the food industry.

Regional Overview
China is the largest acetic acid manufacturer, with over 40% of global production capacity in 2014. Domestic consumption is also high, resulting in low exports, with volumes estimated to reach 7,575.4 kilo tons by 2022.

Apart from China, Asia Pacific acetic acid market is expected to grow at over 4.5%, driven by strong consumption in India, Thailand, South Korea, Vietnam and Indonesia.

Latin America acetic acid industry is expected to reach USD 265.4 million by 2022, dominated by Brazil, accounting for over 50% of consumption in 2014. Europe acetic acid market demand is estimated to exceed 1,800 kilo tons, primarily owing to strong demand in Germany.


Competitive Market Share
The industry is fairly fragmented, with production being concentrated in Asia, owing to the presence of a number of small-scale domestic producers, especially in China and India. BP, Celanese, Eastman, Sopo accounted for less than 50% of the overall acetic acid market share in 2014. Other key companies include Saudi Petrochemicals, DuPont, BASF, LyondellBasell and Wacker Chemie.

The industry is anticipated to make a turn for consolidation, which may result in the market witnessing mergers & acquisitions over the next five years

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